If you like paying federal income taxes, rejoice: it`s...

If you like paying federal income taxes, rejoice: it`s getting more difficult to avoid owing the government money.

But those who prefer to keep Uncle Sam at arm`s length, at least at tax time, have 120 days to crunch the numbers and figure out an alternative.

Cutting the tax bill this year may well be as difficult as ever for many. Deductions are dwindling into oblivion and tax shelters have just about vanished.

``The original intent (with the tax law changes) in 1986 was that deductions were to become more limited and the tax code simpler,`` said Peter Woolf, tax partner at Price Waterhouse. ``I don`t know that the tax code`s become simpler, but it has become very hard to tax-plan.``

Indeed, tax year 1990 is looking like a watershed year. Income tax rates probably are headed higher, not lower, given that a slowing economy, thrift bailouts and Persian Gulf military deployments are stretching the government`s overextended fiscal position.

Compared with a top rate of more than 80 percent in 1960, 1990`s top tax rate of 28 percent appears to be in the trough of the cycle.

``These rates are probably going to be the lowest we`re going to see for a while,`` said Jim Werle, Ernst & Young`s tax partner in Fort Lauderdale.

Affluent people used to benefiting from a top tax rate of 28 percent will pay a top rate of 31 percent in tax year 1991, with the elimination of ``the bubble,`` or the drop down to the 28 percent tax rate from 33 percent.

FOR THE RECORD - ***************THE FOLLOWING CORRECTION WAS PUBLISHED DEC. 18,1990******Because of outdated information from the Internal Revenue Service, the wrong toll-free telephone number to order tax forms and publications was run on page 8 of Monday`s Weekly Business section. The correct number is 1-800-829-3676.We regret the error.

In addition, next year, most taxpayers with adjusted gross income of more than $100,000 will lose a portion of certain itemized deductions such as mortgage interest, charitable contributions and local taxes.

``The rule of thumb is that for every $100,000 over an adjusted gross income of $100,000, your itemized deductions will be reduced by $3,000,`` Woolf said.

And as the situation is now, the tax code will continue to do little to encourage more savings and investment. The tax rate on capital gains, which are now taxed at the same rate as a taxpayer`s ordinary income, will be fixed at 28 percent next year -- the same level most people were paying anyway.

Starting this tax year, the personal exemption has been phased out for high-income taxpayers as well. And next year the rate on the Alternative Minimum Tax -- a separate tax system set up to guarantee that everyone pays their fair share of taxes -- goes up to 24 percent from 21 percent.

Meanwhile, itemized deductions are getting more scarce. This tax season, the last in a five-year phase-out period, only 10 percent of consumer interest paid on such things as auto loans and credit card charges is deductible.

After Dec. 31, a deduction on interest paid on mortgages and investment borrowings is all that`s left.

Still, there is a smattering of good news on the tax front.

The catastrophic health-care surtax, which some tax accountants said could cost older taxpayers about $700 a year, was repealed.

``That`s a plus for quite a few people down here,`` Preston said.

Younger people and employers will pick up the slack, however, through a higher Medicare insurance fund rate within the Social Security tax.

Because of the surtax`s repeal, ``regular earners making between $53,400 and $125,000 are going to pay more,`` Woolf said.

The Social Security tax rate increased to 7.65 percent from 6.06 percent in 1989. This year`s rate includes a 1.45 percent Medicare tax.

Income tax brackets now are being adjusted for inflation, meaning that a married couple making about $75,000 or less and a single individual making about $45,000 or less will fully benefit from the adjustments, tax specialists said.

Taxpayers who do not itemize have a higher standard deduction this year: $5,450 for a married couple filing jointly, compared with $5,200 last year; and $3,250 for a single person, compared with $3,100 last year.

Non-itemizers also get a $2,050 personal deduction this year, $50 higher than last year.

The standard mileage rate for business use of an automobile is up to 26 cents a mile, compared with 25.5 cents last year. And the 26 cents applies to all business miles driven. In previous years, it applied only to the first 15,000 miles, and then the rate dropped much lower.

With the end of the year approaching, few options remain for taxpayers to cut their tax bill.

``The opportunity now for any significant tax trimming is gone,`` Preston said. ``It`s going to cost you a lot of money to get a lot of benefit at the end of the year.``

Nonetheless, some strategies include:

-- Charitable contributions made with a credit card by Dec. 31 are deductible in 1990 even though the charge won`t be paid until January.